For an Investor with a Time Horizon of Five Years

Multiple Choice

For an investor with a time horizon of five years and moderate risk tolerance, an appropriate asset allocation strategy would be

A) 100 percent cash.
B) 30 percent cash, 50 percent bonds, and 20 percent stocks.
C) 20 percent cash, 40 percent bonds, and 40 percent stocks.
D) 10 percent cash, 30 percent bonds, and 60 percent stocks.
E) 100 percent bonds.